There is evidence that age-related memory decline does not effect all types of episodic information to an equal extent, but that especially contextual memory and the integration of multiple features in memory deteriorate. The current study investigates contextual memory in a group of healthy young (N = 40) and older (N = 40) adults without dementia. All participants performed a computerized memory task assessing target memory (objects only), contextual memory (positions only) and memory for the combinations of two features (object, space, temporal order), that is, binding of target-context or context-context features. The results showed age-related decline on all task conditions. Furthermore, the performance on conditions requiring the binding of target and context features was affected to a greater extent in older adults compared to younger adults. These findings support the notion that a decline in contextual memory and binding might underlie poorer episodic memory in older participants.